Through ISMG's Lens: Cyber Insurance | Edition 7

In the previous edition, we covered ransomware attacks and learned how industry leaders are tackling ransomware, and the steps they are taking to mitigate its impact on businesses.  

The cyber insurance industry has been facing challenges due to increasing ransomware attacks and the rising cost of cybercrime. The unpredictability of cybercrime does not work well for the industry. New coverage and rising renewal rates are major concerns as premiums rise 10 to 20-fold. 

Recent research reports that 70% of cybersecurity professionals believe that insurance payments to companies that have paid a ransom exacerbate the problem and cause more attacks. Moreover, cyber insurance companies are targets themselves.

Let’s look at what the community is saying about cyber insurance:

Increase in Ransomware in 2022 Will Kill Cyber Insurance

As ransomware threats continue to increase in 2022, cyber insurance companies have stated that they do not want to talk about the "cyber" part of insurance. The only option for enterprises is to build cyber resilience, says Sujit Christy . Watch the full interview with Geetha Nandikotkur

Ransomware Defenses: Cyber Insurer Details Best Practices

Insurance claims being filed by ransomware victims are growing as criminals continue to hit businesses with crypto-locking malware. To avoid these claims, organizations can take a number of proven steps to better protect themselves, says Payal Chakravarty of insurer Coalition, Inc. Watch the full interview with Mathew Schwartz

Don't Make Cyber Insurance Your Only Line of Defense

When choosing cyber insurance, follow the checklist of cybersecurity requirements the prospective insurer provides, but go beyond it to lower your premiums and avoid a "nasty surprise," says Jacxine Fernandez , vice president of IT at Bangalore International Airport Ltd . Watch the full interview with Rashmi Ramesh

Cyber Insurance: A Helping Hand But Premiums Are Rising

Cyber insurance can defray costs associated with data breaches and ransomware attacks. But Kelly Butler of the advisory firm Marsh & McLennan Companies says insurers are tightening their requirements for policies due to rising costs associated with increasingly severe incidents. Watch the full interview with Jeremy Kirk

"Gone are the days when you can just complete a two- to three-page tick-box exercise proposal, which is pretty standard in insurance, but for cyber that clearly wasn't working, insurers are definitely seeking a lot more information." 

Kelly Butler , cyber practice lead, Marsh McLennan Companies 

Premium Hikes Spur Improved US Cyber Insurance Loss Ratios

A surprising improvement in loss ratios for cyber insurance providers in 2021 means that the rapid rise in premiums might, at last, subside later this year. The loss ratio declined for the first time since 2018 despite the frequency and severity of claims filed for cyberattacks increasing again in 2021. Read the full article by Michael Novinson

"The questions that insurance companies ask are working, and I think for when we see this report for calendar year 2022, I think we'll definitely see an improvement in claims based on the questions that they're asking."

  Anthony Dagostino , founder and CEO of cyber insurance provider Converge Insurance

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That's all for today!

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- ISMG Social Media Desk